Senator Raises Alarm as 12,000 Kenyans Lose Jobs

Cleophas malala
Kakamega Senator Cleophas Malala. He has petitioned Senate to look into the recent job losses in the country that have affected thousands of people [Pgoto, Courtesy]
The Senate Labour Committee has started investigations into massive layoffs in the country that have seen thousands lose their jobs.

The investigations are a result of a petition by Kakamega Senator Cleophas Malala who asked the Senate to investigate the closure of businesses and employee layoffs.

In the petition, Malala listed 9 companies that have recently terminated 14,000 employees.

He alleged that Unilever Tea Kenya fired 11,000 employees while 222 employees of security firm Securex Ltd were rendered redundant.

Securex notice of termination of contract to 222 employees [Photo, Courtesy]
Other companies that have laid off employees this year include Finalys Flowers (1700) Nakumatt (800) Stanbic Bank (200) Nestle Kenya (more than 100) and Kenya Airways (38 employees).

According to Malala, the massive job losses would increase cases of depression among Kenyans as well as shrink national and county government revenues.

The Senator noted that business closures have affected thousands of Kenyans who happen to be breadwinners in their families.

Malala blamed job losses on unfavourable business environment in the country and lack of sustainability among firms.

He said: “If we allow these massive business closures and job losses, we should also be ready to shoulder massive cases of depression and suicide as a country”.

SportPesa CEO Ronald Karauri. The firm in September fired 400 employees [Photo, Courtesy]
The Senator urged the government to enact favourable economic policies for businesses to thrive by simplifying the country’s tax regime.

Last month betting companies SportPesa and Betin issued notices of redundancies to its employees after closing operations in the country.

SportPesa fired its 400 employees terming a hostile operating environment under the new tax rules.

 

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